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The RBA. A guide to how it works - Gold Coast - Brisbane

The RBA. A guide to how it works

The Reserve Bank of Australia is a body corporate wholly owned by the Commonwealth of Australia and is Australia’s central bank. Although it is called a bank it does not have any banking facilities.

When The Reserve Bank of Australia (RBA), on 14 January 1960, became Australia’s central bank, there were two boards created:

The Reserve Bank Board and

The Payments System Board

The Reserve Bank Board and The Payments System Board are made of up ex officio and non-executive members, aiming to provide price stability, full employment and economic prosperity for all Australian people.

These board members are responsible for making monetary policy decisions on cash rates (the interest rate which banks pay to borrow funds from other banks in the money market on an overnight basis) and issuing currency.

They are also responsible for controlling consumer price inflation, currently on average at 2-3%.  This element of control helps to preserve the value of the Australian dollar and encourages sustainable growth in the nation’s economy over the long term.

The Governor and senior officers of The Reserve Banks’ boards appear twice yearly before the House of Representatives Standing Committee on Economics to report on the conduct of monetary policy and other matters falling within the responsibility of the Reserve Bank.

Through a range of media releases and publications issued on a regular basis, The Reserve Bank provides information to assist financial markets carry out their normal activities and to inform the broader economic community.

It will also issue a media release when there is an important message to communicate about monetary policy, or matters such as changing the cash rate target and the reasons for doing so.

The behaviour of borrowers and lenders in the financial markets is influenced and affected by monetary policy, so The Reserve Bank meetings are often viewed with much interest.

Nexhome Finance is a Gold Coast based finance, mortgage broker and home loan company that also services Brisbane and the surrounding areas.

We stay abreast of all Reserve Bank meetings so we know what any changes to monetary policy and home loan interest rates will have on the home loan market place.

Our highly qualified and professional team expertly help clients with their personal and business related finance from purchasing to refinancing and even property sourcing.

With access to over 30 lenders, Nexhome Finance can offer tailor made finance solutions so you have the best chance of finding a home loan package that suits your individual needs.

If you need help deciphering what Reserve Bank meetings mean to you and your existing home loan or prospective property purchase, speak to Nexhome Finance today on 0412 525 706.

We are a multi-faceted financial service and mortgage broking company based on the Gold Coast and we also service Brisbane areas. We specialise in home loans, refinancing, investment loans, construction loans, property sourcing, vehicle and equipment finance, commercial property finance, insurance and more!